2. Wolfgang Munchau writes that
it makes no sense for Greece to default on its obligations at
this time. And it doesn't make any sense for Germany to
push for a Greek default at this time. So something will be
worked out and the eurozone will survive, at least for another
year.

4.
Negotiations on the federal deficit enter a critical phase in
Washington this week. The Financial Times reports: "The
White House does not want the negotiations to continue until the
last minute before the August deadline, because it fears such
brinkmanship could have a...damaging impact on confidence even
without a default...(N)one of the parties expects an agreement by
July 2, the initial deadline."

6. US Defense Secretary Robert Gates over the weekend
acknowledged that the United States has been negotiating with the
Taliban. The US has made no secret of its desire to achieve a
political settlement that ends the war in Afghanistan.
The talks appear to be going nowhere.

7. The Washington Post reports: "The U.S. ambassador to
Afghanistan, in unusually blunt and personal comments Sunday,
responded sharply to President Hamid Karzai’s escalating
denunciations of American and NATO forces and aid efforts in
Afghanistan."